Decanter World Wine AwardsBordeaux 2010: 'Not a bubble', says Cazes
- Friday 8 July 2011
Sylvie Cazes (pictured), managing director of Chateau Pichon Lalande and recently re-elected president of the UGC told Decanter.com that the 2010 en primeur campaign has proved that Bordeaux is beginning to find a balance between price and demand.
Cazes said, ‘Of course there is concern about high prices but we are aware of the need to keep a balance.’
The situation with the new Asian markets was similar to the entry of America into the Bordeaux market in the 1980s, she said, when there was the same worry that European buyers were deserting Bordeaux as chateaux chased the new market over the Atlantic.
‘Every time there is a new market, tension is created. It happened with America in the 1980s and it happened with Asia last year. But this year has been more stable – there hasn’t been the same excitement.
‘Everything is self-regulated and now we have a good balance between Europe, Asia and the United States, although the US has been difficult. There is still great demand from Asia but it is not increasing as much as it did with the 2009 vintage.’
She added, ‘I don’t believe in bubbles – with a bubble you have a great increase, then it bursts. I don’t think this will happen – the market will stabilize itself, and with 2010 we are seeing the start of that regulation.’
Cazes also stressed that the extraordinary prices the first growths had reached was a ‘special phenomenon’.
While many agree, there are senior figures in Bordeaux that – both privately and publicly – fear that prices are reaching unsustainable levels.
Discussing the price of St Emilion first growth Cheval Blanc, which released at €900 per bottle from negociants and has proved extremely sluggish in the market, one Bordeaux veteran, who wished to remain anonymous, told Decanter.com that Chinese buyers may begin to get cold feet.
‘If this virgin market [China] sees that they are the only country buying this at this enormous price, they may well see that they are being fleeced, lose face, and turn a very cold shoulder towards Bordeaux.’
In Bordeaux, Mathieu Chadronnier, managing director of negociant CVBG Grands Crus, refused to predict the existence or otherwise of a bubble but conceded that in some cases, prices were indeed ‘out of control’.
Have your say!
chris forest
February 06 19:56
People who don't believe in bubbles are foolish. Bordeaux has alienated its older american customers. I know some people who have cases of the 2000 vintage and olders one like the 82's. They even have some 2005. Yet they refuse to buy the 2009's and the 2010's because of high prices. These are also people who can buy cases many times over. Yet they passed. Bordeaux had better figure out a solution soon. These prices can only go down. Look for back vintages as they are usually cheaper. Will Bordeaux be a good investment? Only time will tell. They will always probably be a good investment provided you can buy them at reasonable prices.
Samuele Fardo
July 17 17:43
It's impossible to compare the prices increase of the 80's or 90's with today.
In 1992 I was selling Mouton en primeurs at around Chf. 50/60 (less than 50 Euro).
Everybody could buy that.
Today the market drove certain top wines to a real luxury market for an elite group of wine lovers.
15 years later I bought Cheval Blanc 2005 at Euro 500 en primeurs from a bordeaux négociant. I did not sell it unfortunately.
Today the same wine on wine searcher starts from Euro 494.94 which is quite less in Chf than 2007 at the today's change.
Cheval Blanc is out of my company's list a part vintages older than 2005.
Maurizio Palomba
July 13 12:10
Sylvie Cazes, directrice de l’Union des Grand Crus de Bordeaux, et co-propriétaire de Château Lynch Bages à Pauillac,a été nommé Directrice de Château Pichon Longueville Comtesse de Lalande.
Elle remplacera Gildas d’Ollone qui, avec le directeur technique de Thomas Do-Ch- Nam, avait été à l’origine de la renaissance de ce Second cru classé de Pauillac.
Karen before add anything STUDY!!!!!!!!!!!!!!!!
Rupert
July 12 16:41
This time it is different! - the most expensive words ever spoken. There is no way you can say Bordeaux is self regulating - it is a bit like saying News International is self regulating.. Good for a laugh though!